Starbucks Taps Google For Faster Wi-Fi At Outlets

The Wi-Fi speeds at your local Starbucks (SBUX) outlet will soon get faster, under an agreement unveiled Wednesday between the global coffeehouse chain and Google (GOOG).

Starbucks says it's selected Google to provide its next-generation Wi-Fi offering for customers. The two companies are also teaming to co-develop a more advanced Starbucks Digital Network that offers content to Starbucks clientele.

Starting in August, new U.S. Starbucks outlets will begin to receive up to 10 times faster network and Wi-Fi speeds. Starbucks will also convert more than 7,000 of its U.S. stores over the next 18 months to the upgraded store network and Wi-Fi experience. Financial terms weren't disclosed.

The pact with Google ends an arrangement that Starbucks had with AT&T (T) to provide Wi-Fi at its national outlets.

"We will be transitioning away from AT&T over the next 18 months," Starbucks spokeswoman Linda Mills told IBD, saying existing company coffee outlets will be gradually shifted from AT&T to Google Wi-Fi.

"Every day, our customers rely on the free Wi-Fi at Starbucks to study, work, connect with friends or just relax. We want to make sure that they can access the web effortlessly and quickly, no matter what they're doing, or what device they are using," Adam Brotman, chief digital officer of Starbucks, said in the company's press release. "Our goal is to continue to provide our customers with the best in-store experience possible, and we are excited to offer these kinds of unparalleled experiences at a broad scale."

Starbucks and Google didn't say much about the next-generation version of the Starbucks Digital Network. The current in-store network offers free content like movie trailers, assorted videos and other offerings to customers. Google didn't say if its pact with Starbucks would be used as a jumping-off point to develop more advanced networks with e-commerce and media applications. But the search leader seems to be leaving the door open to future possibilities.

"Google has always invested in projects that help the Internet grow stronger, including projects that make Internet access more affordable and more widely available. We hope that speedier Internet will make the time customers spend at Starbucks even more enjoyable and productive," Kevin Lo, general manager of Google Access, said in the release.

"Google will be an active partner of Starbucks Digital Network going forward," said Starbucks' Mills.

Starbucks and Google will work with telecom firm Level 3 Communications (LVLT) to boost Wi-Fi connectivity at Starbucks outlets. Level 3 will upgrade existing Wi-Fi devices and manage in-store connectivity at all U.S. outlets.

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